- Dollar General‘s second quarter earnings per share (EPS) came in at $1.70, below last year’s $2.13 and the estimated $1.79.
- Net sales reached $10.21 billion, showing a 4.2% year-over-year increase, but missed the estimate of $10.37 billion.
- Comparable sales growth was +0.5%, improving from last year’s -0.1%, but below the estimate of +2.07%.
- Gross margin decreased to 30% from last year’s 31.1%, missing the estimate of 30.3%.
- SG&A expenses as a percentage of revenue were 24.6%, up from 24% last year, and higher than the estimated 24.4%.
- Operating profit fell by 21% year-over-year to $550 million, below the expected $587.5 million.
- CEO Todd Vasos mentioned positive traffic growth but expressed dissatisfaction with the financial results, including top-line figures.
- Vasos highlighted the progress on the “Back to Basics” plan but pointed out that the softer sales trends are partly due to financially constrained core customers.
- Analyst recommendations include 14 buys, 15 holds, and 1 sell.
Dollar General on Smartkarma
Analysts on Smartkarma have been actively covering Dollar General, providing insights and research on the company’s performance and future prospects. Value Investors Club published an opinion-based note on Dollar General Corp (DG) three months ago, cautioning readers to conduct their research before making investment decisions. The lean was bullish in the analysis, suggesting optimism towards the company’s potential.
Baptista Research shared two reports on Dollar General Corporation, highlighting key financial updates such as net sales growth in the first quarter of 2024. Despite a decline in same-store sales, there was a positive emphasis on supply chain efficiencies and market share growth. The reports hinted at potential price influences and valuation assessments using methodologies like Discounted Cash Flow (DCF), indicating a favorable view on Dollar General‘s future performance.
A look at Dollar General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Dollar General is projected to have a solid long-term outlook. With consistent scores of 3 in Value, Dividend, Growth, and Momentum, the company is positioned as a stable investment option. While its Resilience score of 2 indicates a slightly lower level of stability compared to other factors, Dollar General‘s overall performance seems promising.
Dollar General Corporation, known for its chain of discount retail stores primarily in the U.S., offers a wide range of products from consumables to non-consumables. With a balanced mix of scores across key factors, Dollar General shows strength in value, growth potential, and momentum, making it an appealing choice for investors looking for steady returns over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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